Newmont Mining Corporation
) has announced preliminary gold and copper production for the
fourth quarter and full-year 2012. The company also provided its
outlook for 2013.
The company's attributable gold and copper production for the
fourth quarter amounted to 1.3 million ounces and 35 million
pounds, respectively. Attributable copper and gold sales were 1.2
million ounces and 42 million pounds, respectively, in the
Average realized gold and copper price for the quarter was
$1,700 per ounce and $3.22 per pound, respectively. The company's
expenditure for the upcoming projects remained well within its
For the full year, attributable gold production was 5 million
ounces and copper production was 143 million pounds. Sales of
gold and copper for the year were 4.9 million ounces and 145
million pounds, respectively.
Newmont's board of directors also hiked the gold price linked
dividend by 21% year over year to 42.5 cents per share for the
first quarter of 2013.
The company also gave its outlook for 2013 and anticipates
attributable gold and copper production to be approximately 4.8
to 5.1 million ounces and 150 million to 170 million pounds,
respectively. The cost applicable to sales is anticipated to be
in the range of approximately $675 to $750 per ounce of gold and
$2.25 to $2.50 per pound of copper.
Newmont forecasts capital expenditures to be in the band of $2.1
billion to $2.3 billion in 2013. The company expects capital
expenditure to decrease 20% from 2012.
The company aims to advance its pipeline projects that are
expected to be profitable. These include the completion of
construction at Akyem and start of production in late 2013, and
advancement of the stripping campaign at Batu Hijau to prepare
for Phase 6 mining.
Newmont's focus also lies in increasing its profitability and
ensuring strong cash flow generation. Thus, it intends to focus
on mining fundamentals - from technical competency to safety and
Newmont currently carries a Zacks Rank #3 (Hold).
Other companies belonging to the gold mining industry with
favorable Zacks Rank are
AngloGold Ashanti Ltd.
), with all holding a Zacks Rank #1 (Strong Buy).
ANGLOGOLD LTD (AU): Free Stock Analysis
DRDGOLD LTD (DRD): Free Stock Analysis Report
FRANCO NV CP (FNV): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
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